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mmO2 signs 10-yr deal with IBM

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mmO2 - aka BT Cellnet - has turned to IBM to sort out its customer services operation in a deal worth £50 million in the first year.

The mobile telco has signed a ten-year outsourcing agreement with Big Blur to build customer and business support services.

The first phase of the agreement with IBM Global Services covers the integration of existing systems, including the Genie Mobile service, during the coming year.

It's understood that no jobs will be lost as part of the agreement.

Elsewhere, shares in mmO2 - or BT Cellnet if you prefer - slipped in morning trading following yesterday's announcement that BT is to re-enter the wireless market.

It seems analysts are still unclear how this re-entry by mmO2's former parent will affect the future of this recently spun-off business.

By mid-morning shares in mmO2 were down 5.25p (8.6 per cent) at 55.75p. ®

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